PAYMENT GATEWAYS AUSTRALIA

With the numerous Payment Gateways in Australia it has become an increasingly difficult task to determine which Payment Gateway in Australia is the best value. This website provides information on some of the major Payment Gateways in Australia to help merchants or start-up business owners determine which Australia Payment Gateway may be best suited for accepting payments online for their online business.

View Australian Bank Comparisons & Australian Payment Gateway Reviews to help you determine which Payment Gateway in Australia suits your requirements.

Major Payment Gateways in Australia

What is a Payment Gateway?

To understand exactly what a Payment Gateway in Australia is capable of and determine whether you require a Payment Gateway in Australia it is important to differentiate between a Payment Gateway and a Third Party Processor.

The world’s largest Third Party Processor is PayPal. A Third Party Processor does not require its merchants to obtain a merchant account and because of this there are certain advantages and disadvantages in this approach. If a merchant does not have to setup their merchant account they are able to start processing transactions much quicker and the initial costs may seem cheaper than utilizing a Payment Gateway in Australia. The downside is that Third Party Processors do not settle funds daily (there is often a delay) and the fees which are charged are higher than what would be charged for a Direct Merchant Account and Payment Gateway approach. Third Party Processors are less expensive in the short term and that is why so many new online businesses choose to start with someone like PayPal. In the long run a Payment Gateway and Direct Merchant Account is always the more cost effective solution.

A very simple way of understanding exactly what a Payment Gateway in Australia does is to imagine paying for fuel at a service station with your credit card. You place your credit card into a physical terminal and swipe it, the software on the terminal then processes the transaction on behalf of the service station and notifies the store attendant whether the transaction was successful or not. In an online payments scenario a Payment Gateway is the software that processes the transaction on behalf of the merchant.

A Payment Gateway in Australia will require you to obtain a merchant account from one of its acquirers (Banks). Merchant Warrior is a local Australian Payment Gateway that aids merchants in establishing a merchant account. If you’re looking to establish a merchant account give Merchant Warrior a call – (07) 3166 5489.

Once you have established a merchant account you simply pass this information to a Payment Gateway in Australia and you will be able to accept payments online, receive daily settlements to a merchant account which is owned by yourself, receive reports and commonly enjoy low fees.

3rd Party Processor vs. Payment Gateway

PayMate is an Australian based third party processor. To view the difference in fee structures between a Third Party Processor and a Payment Gateway in Australia we’ll review the cost of PayMate and Merchant Warrior a local Australian Payment Gateway.

The following information is from www.paymate.com.au:

Paymate Seller Fee Table

Please note that acceptance of US Dollar credit card payments incurs a 1.5% additional seller’s fee.
** ALL Paymate fees charged to an Australian buyer or seller are subject to 10% GST charge ON THE FEE ONLY

Paymate Account TypeMonthly Cost and payments/month received with no extra fees (prepaid amount)Transaction fees for credit card payments received over and above the prepaid amount
STANDARD AccountNIL – no prepaid amountAll credit card payments charged at 2.4%**

Maximum AU$5,000 in a month
ECONOMY AccountMonthly fee of AU$3.30 (incl GST) pays for the first AU$200 in credit card payments received.Credit card payments received above AU$200 charged at 2.2%**

Maximum AU$5,000 in a month
PROFESSIONAL AccountMonthly fee of AU$8.25 pays for the first AU$500 in credit card payments received.Credit card payments received above AU$500 charged at 1.9%**

Maximum AU$5,000 in a month
PREMIER AccountMonthly fee of AU$16.50 pays for the first AU$1,000 in credit card payments received.Credit card payments received above AU$1,000 charged at 1.8%**

Maximum AU$5,000 in a month
eBUSINESS AccountMonthly fee of AU$33.00 pays for the first AU$2,000 in credit card payments received.Credit card payments received above AU$2,000 charged at 1.7%**

Maximum AU$10,000 in a month


Paymate Buyer Fee Table

** ALL Paymate fees charged to an Australian buyer or seller are subject to 10% GST charge ON THE FEE ONLY

STANDARD Account - No Need to Register!Free
Make a credit card payment in Australian Dollars. All cards.AU$0.50 + 3% **
Make a credit card payment in US Dollars. All cards.US$0.50 + 3% **

It’s important to note that the seller can opt to absorb the fees that are charged to the buyer.


Bank & Payment Gateway in Australia fees

At the time of this writing the National Australia Bank was charging the following for an online merchant account:

  • Establishment: $80
  • Monthly: $7
  • Annual: $28
  • Per Transaction Fee also known as Merchant Service Fee (MSF): 0.8%-2% (negotiable and depends on the industry and volume of your business)

At the time of this writing the Australian Payment Gateway fees (Merchant Warrior):

  • Setup: $199 (negotiable)
  • Annual: $400
  • Per Transaction Cost: As low as $0.15 (negotiable and depends on the industry and volume of your business)

The pricing above is for a standard API integration further pricing information can be found here.


Summary

Looking at the above price of a Third Party Processor and a Payment Gateway in Australia it’s simple to see that utilizing a Payment Gateway in Australia can be a far more cost effective solution in the long run. The initial costs may seem high however the per transaction costs in the long run may be well worth it. New Online Business owners may opt to use PayMate or PayPal to begin accepting payments online but should seriously consider utilizing a Payment Gateway in Australia when they start processing a steady number of transactions.

The Best Payment Gateway in Australia?

Each of the Payment Gateways in Australia listed above have their strengths and weaknesses. Determining which Bank and which Payment Gateway is best suited for your business will depend solely on your business industry and the requirements of your online business. The Australian Bank Comparisons & Australian Payment Gateway Reviews can help you determine which Payment Gateway in Australia may be the best option for your needs.